Acri Capital and Foxx Development Merger Wins Stockholder Nod

AUSTIN, TX - Acri Capital Acquisition Corporation (NASDAQ:ACAC), a special purpose acquisition company, announced today that its stockholders have overwhelmingly approved the business combination with Foxx Development Inc., a consumer electronics and integrated Internet-of-Things (IoT) solution provider. The approval was secured during a special meeting, with approximately 96.9% of votes cast in favor of the merger.

The business combination is expected to close in the following month, subject to the satisfaction of closing conditions. Upon completion, the merged entity will be known as Foxx Development Holdings Inc. and will trade on the Nasdaq under the ticker symbols "FOXX" for common stock and "FOXXW" for warrants.

Acri Capital Acquisition Corporation is a blank check company created for the purpose of acquiring or merging with one or more businesses. Foxx Development Inc., established in 2017 and based in Texas, serves both retail and institutional clients with a product range that includes mobile phones, tablets, and other consumer electronics. Foxx is also expanding its offerings to include end-to-end communication terminals and IoT solutions.

The company's strategic partnerships with mobile network operators, distributors, and suppliers globally have been a cornerstone of its growth strategy. Today's approval by Acri Capital's stockholders marks a significant milestone toward the completion of the transaction, which is anticipated to enhance Foxx Development's market position and expansion efforts.

The results of the vote will be filed on a Current Report on Form 8-K with the Securities and Exchange Commission later today by Acri Capital. This business combination aligns with the growing trend of SPACs facilitating public listings for technology companies, particularly in the rapidly evolving IoT sector.

The announcement is based on a press release statement and comes amid a landscape of heightened regulatory scrutiny on SPAC transactions. Both companies have expressed optimism about the future prospects of the combined entity, while acknowledging the inherent risks and uncertainties associated with such business combinations.

In other recent news, Acri Capital Acquisition Corporation has announced an extension to the deadline for its inaugural business combination. The additional month, which shifts the deadline from June 14, 2024, to July 14, 2024, was secured through a $50,000 deposit into the company's trust account. This extension is in line with Acri Capital's amended and restated certificate of incorporation, which permits monthly deadline extensions for the business combination, provided that new monthly extension payments are made.

The firm, a special purpose acquisition company (SPAC), has been actively identifying and merging with a target company since its establishment. As a SPAC, Acri Capital is designed to raise capital through an initial public offering (IPO) to acquire an existing company.

These recent developments are part of Acri Capital's ongoing efforts to finalize a business combination within the newly extended timeframe. It is worth noting that these forward-looking statements, though based on current management views and expectations, are subject to various risks and uncertainties.

InvestingPro Insights

As Acri Capital Acquisition Corporation (NASDAQ:ACAC) prepares for its merger with Foxx Development Inc., investors have shown a strong interest in the future of the combined entity. With the stockholders' approval of the business combination, it's an opportune moment to delve into some key financial metrics and insights provided by InvestingPro. ACAC's market capitalization stands at $46.47 million, reflecting the market's current valuation of the company.

InvestingPro data indicates that ACAC has a notably high price-to-earnings (P/E) ratio of 262.51, which suggests that the stock is trading at a premium relative to its earnings. This is further emphasized by the adjusted P/E ratio for the last twelve months as of Q2 2024, which is 157.15. This high earnings multiple can be a signal to investors that the market has high expectations for the company's future growth, aligning with the optimism surrounding the merger.

One of the InvestingPro Tips for ACAC points out that the stock generally trades with low price volatility, which could be a favorable sign for investors looking for stability in their investment. However, it's important to note that the company does not pay dividends, which may influence the investment decisions of income-focused shareholders.

The company has been profitable over the last twelve months, which is a positive indicator of its financial health as it enters into this business combination. For investors interested in a more comprehensive analysis, InvestingPro offers additional tips on ACAC, which can be found at InvestingPro's ACAC page.

As the merger with Foxx Development Inc. progresses, these financial insights can provide investors with a clearer picture of ACAC's current standing and potential future performance. With the combined entity set to make waves in the consumer electronics and IoT market, keeping an eye on these metrics will be crucial for stakeholders and prospective investors alike.

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